Guj NRE picks 20 pc in Australian coal mine
(The Economic Times, Ahmedabad, October 25, 2005)

The first consignment of coking coal from the Gujarat NRE Coke�s Australian mine is set to arrive on the Indian shore by the end of this month. As part of its expanding operations in Australia, the company today said that it has picked up a 19.9 per cent stake in another Australian coal mine company � Rey Resources Ltd (RRL). The initial investment is worth Rs 6.4 crore.

`Our first consignment should reach Indian shores by the end of November,� Sumit Khetan, president, Gujarat NRE Coke Ltd told ET. The first consignment will be of the order of 40,000 tonnes of coking coal, which is being mined from the company�s first coal mine in Australia - NRE No.1 Colliery. The colliery started production in September and has an initial production capacity of one million metric tonne a year.

About the company�s new investment Khetan says, `we may increase our stake in the company in future based on the investments required in developing a mine.� Through this, the company says it will be able to ensure raw material supplies.

As part of the agreement, Gujarat NRE Coke�s managing director and vice chairman Arun K Jagatramka will be member of the board of RRL. The investment gives exploration access to an unexplored area of about 4000 sq km in Western Australia, where preliminary studies have already identified a 15 m thick coal seam, according to a company release.